High Street GRP Ltd files a Notice Of Intention to Appoint Administrators

High Street GRP Ltd files a Notice Of Intention to Appoint Administrators

High Street GRP Ltd files a Notice Of Intention to Appoint Administrators 500 333 SOS Team

High Street GRP Ltd files a Notice Of Intention to Appoint Administrators.

A Notice Of Intention to Appoint Administrators (“NOI”) was filed by High Street GRP Ltd with the High Court in London on 4th November 2021. A NOI is exactly what it says i.e that the company intends to appoint administrators.

However, it is not necessarily the case that the company will go through with its intention. A NOI gives the company 10 working days protection from creditors who might have been taking their own insolvency action e.g filing a winding up petition. If the company does not appoint administrators in that period the NOI falls away. We have clients who had advised High Street GRP of their intention to file a winding up petition against the company. The filing of this NOI has prevented them from being able to do so until the NOI lapses. The company can apply for an extension of 10 days if it looks like a deal is imminent, but this extension must be in the interests of creditors and must be justified.

Coincidentally, this filing was on the same day that Castle Trust and Management Services Ltd, the Security Trustee for the High Street GRP bondholders which appears to have failed in its duty to adequately protect bondholders, sent out a letter stating that it has been in regular contact with the Board of Directors of High Street GRP Ltd and has been aware of the restructuring plans throughout. It is apparently pleased that the first phase of the restructuring has been completed, but does not give any details.

Castle Trust and Management Services Ltd, based in Gibraltar, is allegedly working with the Board and its corporate advisors. The letter does not mention that High Street GRP Ltd was intending to file a NOI on that very same day.

We don’t trust Security Trustees generally and we definitely don’t trust Castle Trust and Management Services. Security Trustees are appointed by companies, not by loan note holders, and it has become apparent in a number of cases in recent years that Security Trustees are in the pocket of the companies which appoint them.

We were given legal advice on the position of loan note holders following the opaque vote in June 2021, (supported by Castle Trust and Management Services Ltd who sat alongside Gary Forrest), at the meeting which allegedly resulted in loan note holders agreeing to waive all their rights under their contracts. The legal advice was that the vote outcome would be unlikely to stand up in court and would likely not be binding on loan note holders who had not agreed to change their contracts. It was likely that the court would view it as a frustration of contract issue because many loan note holders’ repayments were due and a company cannot avoid paying its debts by changing a contract without the agreement of the other party. If any investor is owed a debt they should seek legal advice if they intend to challenge the vote and the restructuring.

The restructuring consists of High Street GRP Ltd transferring its assets to Hadrian Real Estate PLC. Loan note holders have been offered free shares in Hadrian Real Estate PLC. One thing investors should always remember is that swapping a debt for shares puts them lower down the pecking order for a distribution of assets should the new company collapse. Creditors, i.e those who have proof of debt, come before shareholders. At the moment we are not aware that loan note holders have been asked to give up their debt claims, but be warned. This restructuring looks very much like the loan note holders’ debts will be left behind in High Street GRP Ltd whilst they end up with shares in Hadrian Real Estate PLC.

Whenever a company owes a huge sum of money and suggests a restructuring, which is certainly the case with High Street GRP Ltd, it is guaranteed that it is in the best interests of the company, but it is often the case that it is not in the best interests of creditors. Investors should take legal advice on the implications of any restructuring and whether it diminishes their rights in any way. It pays to be cautious because once an investor agrees to a change it is binding on them from that point onwards.

We were informed of the involvement of a company called Broadleaf Assist Ltd which was offering to help investors. Broadleaf Assist Ltd had a representative at the June vote who was handing out his business cards. His name was Bradley Lincoln. The Times newspaper has run a couple of stories on Bradley Lincoln which do not paint him in a good light at all. Here are the links to those stories:

Times Article From 2019.

Times Article From 2021.

We have also been contacted by Jane Sanders, a person known to some High Street GRP loan note holders. She has also been covered by the Times newspaper. See below.

Times Article on Jane Sanders.

Ms Sanders’ position in High Street GRP was very similar to her position as described in the Times article. She had gathered together High Street GRP loan note holders on the basis that she was prepared to help them, but she declared to us that she had been working for High Street GRP and she was now upset that they had refused to pay her invoices. We declined her offer for us to work with her because we don’t work with people who operate on both sides of the fence. We only work with people who are 100% committed to helping the victims.

Our investigations have revealed that this is not the only High Street Group company to have filed insolvency papers with the High Court last week. Three other Gary Forrest companies also filed.

To view one of our previous articles on High Street GRP please click here – LINK.

High Street GRP Ltd files a Notice Of Intention to Appoint Administrators.

 

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1 Comment
  • Updated article published on 15th November 2021. High Street GRP Ltd did apply for administration but the case was adjourned until December 2021.

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